African Metals Purchases a Concentration Plant and is Preparing to Commence Mining and Processing of Oxide Material at its Luisha South Project, Katanga Province, Democratic Republic of Congo. Secures Financing and Off-Take Agreement from Traxys.

Trading Symbols

TSXV: AFR

Frankfurt: OWW

VANCOUVER, Sept. 19, 2011 /PRNewswire/ – African Metals Corporation (the
“Company” or “AFR”) is pleased to report that one of its subsidiaries
has purchased a Dense Media Separation (DMS) plant, spiral bank and
associated ancillary plant equipment, to commence mining and processing
of oxide material from the Luisha South Project in the Democratic
Republic of the Congo (“DRC”).

Highlights

AFR’s subsidiaries have:

        --  Secured a US$3.7 million loan agreement with Traxys Europe SA
        --  Executed a 4 year Off-take Agreement with Traxys Europe SA
        --  Purchased a DMS Plant and Spiral bank with associated equipment
        --  Executed a Management Contract with M&J Investments for
            managing the mining and processing of the Luisha South
            material, and
        --  Expect to commence production in October 2011

Loan Facility by Traxys Europe SA

Kundelungu Minerals sprl (“Kundelungu”), a subsidiary of AFR in the DRC,
has entered into a secured Loan Agreement with Traxys Europe SA,
(“Traxys”), whereby Traxys has provided a loan facility of US$3.7
million to purchase a DMS Plant and associated equipment which will
enable AFR’s 75% owned DRC subsidiary, Luisha Mining Enterprise Sprl
(“LME”), to commence production at its Luisha South Project.

Under the terms of the agreement, Kundelungu will repay the loan
facility from 60% of production profits.  The Company has organized the
pledge of the shares of certain of its key subsidiaries to Traxys to
provide security for the loan.

Off-Take Agreement with Traxys Europe SA

African Metals Corp through LME has executed an exclusive Off-Take
Agreement with Traxys. The Agreement is for Traxys to purchase at a
competitive London Metal Exchange market price the copper oxide and
sulphide concentrates produced from the Luisha South Project for a
period of 48 months from commencement of production.

Operating from more than 20 global offices with over 250 employees,
Traxys primarily focuses on the marketing and sourcing of base metals
and concentrates, minor and alloying metals, industrial minerals and
chemicals, materials for steel mills and foundries and carbon products.
Traxys also offers financial and logistical solutions for the
Ferroalloy, Metal, Mineral, Mining and Energy Industries. Traxys has
annual revenue of approximately US$5 billion.

Plant Purchase Agreement

Kundelungu has purchased a 100% interest and ownership of a DMS Plant,
Spiral bank and ancillary equipment located in the Katanga Province,
DRC for a purchase price of US$3 million. The plant is the same one
used by AFR to conduct a 200 tonne bulk processing trial of oxide
stockpile material in May 2011 (see AFR’s news release of May 20,
2011). Approximately 200 tonnes of material was successfully processed
by the DMS plant to produce a DMS concentrate grading approximately 32%
copper, 1.2% cobalt and a fines concentrate from the spirals bank
grading approximately 28% copper and 1.6% cobalt. These results
highlighted the efficiency of the DMS and Spirals plant in processing
the Luisha South Project material to produce a saleable product on
which AFR could build a profitable business.

The DMS Plant has already been decommissioned ready for transport to
LME’s Luisha South Project where commissioning will take place over the
next three weeks. The plant is rated at a maximum through put of 100
tonnes per hour which will more than accommodate AFR’s production
plans.

Management Agreement

M&J Investments sprl (“M&J”), current operators of the DMS Plant, have
also entered into a binding Management Contract with Kundelungu for the
mining and processing of Luisha South material for a period of 6
calendar months starting from commission of the DMS plant. M&J are also
engaged to undertake the necessary training of AFR’s key personnel in
the ongoing processing of material through the DMS plant. AFR have
supplemented the M&J contract by engaging mineral processing
professionals to assist in the smooth transition of operations after
the first 6 month period. AFR will also be entering into a period of
recruitment of suitably qualified support personnel to ensure proper
management and control of the operations.

The Management Contract includes payments to M&J for decommissioning,
transportation to the Luisha South Project and full commissioning of
the DMS plants, spirals bank, recycling ponds, accommodation camp and
plant infrastructure.

Plans for the DMS Plant

AFR has completed extensive modelling of the mining and processing of
the Luisha material. The Company will inject a total of US$5.5 million
in capital expenditure during the first 15 months to enable initial
processing of the oxide material and then subsequent processing of the
sulphide material. Part of this funding comes from the Traxys loan and
the remainder will come from production revenues. The bulk of this
capital expenditure will be for the DMS plant and floatation cells.

Initially, the Company plans to throughput oxide material derived from
the waste rock stockpile. A staged installation of floatation cells is
also scheduled for the future treatment of sulphide material as well as
oxide tailings.

Internal economic modelling has been completed and is favourable for the
Project however the Company intends to undertake independent cash flow
modelling and present those findings as they become available.

Nigel Ferguson, CEO and President of African Metals Corp, commented:

“The Company is very pleased to report the purchase of the DMS plant
with assistance from Traxys. The experience of the M&J team during the
term of the management agreement will ensure the Luisha Project quickly
enters into oxide copper concentrate production, which we believe will
enable Kundelungu to retire all debt within 9 months and bring the
Company into positive cash flow based on conservative input parameters.
The off-take agreement with Traxys augurs well for the mid to longer
term outlook of the Project. Concurrently the Company will continue
surface drilling to seek extensional mineralisation outside the current
resource area and is also actively assessing several other projects,
from which it hopes it will be able to multiply production levels.”

“AFR has achieved great success in the field during the last 18 months
and with a larger resource estimate recently announced the Company is
confident that this will support commercial operations well into the
future. With the commissioning of the DMS concentration plant and
subsequent floatation circuits, the anticipated cash flow will make the
Company well funded and able to service its expanding operations in the
copper belt through recently acquired projects. The Company is
targeting initial concentrate production at the Luisha South Project by
the middle of October, 2011.”

CAUTION TO INVESTORS

The Luisha South Project includes inferred mineral resources that are
considered too speculative geologically to have the economic
considerations applied to them that would enable them to be categorized
as mineral reserves, and there is no certainty that the Company’s plans
to commence production of the Luisha South Project will be realized.
The Company has not completed a feasibility study, a pre-feasibility
study, a scoping study or a preliminary economic assessment to analyse
the economics of the planned operations, and as a result there is a
higher risk and no guarantee that the operations will be economic.

ON BEHALF OF THE BOARD OF DIRECTORS OF AFRICAN METALS CORPORATION

“Nigel Ferguson”

Nigel Ferguson

President & CEO

Ronald J. Lawrence, AIG, the Vice President, Exploration of the Company
and a qualified person under National Instrument 43-101, has verified
the data disclosed in this release.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER
(AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE)
ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEW
RELEASE.

This News Release contains forward-looking statements.  Forward-looking
statements are statements which relate to future events.  These
statements are only predictions and involve known and unknown risks,
uncertainties and other factors that may cause our or our industry’s
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by these
forward-looking statements.  While these forward-looking statements,
and any assumptions upon which they are based, are made in good faith
and reflect our current judgment regarding the direction of our
industry, actual results will almost always vary, sometimes materially,
from any estimates, predictions, projections, assumptions or other
future performance suggested herein. Except as required by applicable
law, the Company does not intend to update any of the forward-looking
statements to conform these statements to actual results.

About African Metals Corporation.

African Metals Corporation [TSXV "AFR"] is a Canadian listed company
focused on the discovery and development of Copper and Cobalt deposits
in the highly mineralized Katanga Copper Belt of the world renowned
Africa Copper Belt in the Democratic Republic of Congo (“DRC”).

AFR purchased the assets of Chevalier Resources Inc. in March 2010
including an initial 57% interest in the Luisha South Project within
licence PEPM 4881. In July 2010, AFR negotiated a further 18% interest
in the Project with the option to increase the equity interest to 90%
based on results. The Project is located 75 kilometres northwest of
Lubumbashi, the capital of Katanga Province and consists of
approximately 16.2km².

The Luisha South Project includes a small historical open pit mine and
associated waste rock stockpile and is underlain by Roan Group
sediments which host major Cu-Co deposits in the DRC. The Luisha South
material body was explored between 1923 and 1928 and an oxide deposit
with an estimated pre-production tonnage of approximately 350,000
tonnes at 8.6% Cu was delineated (the resource estimate non-compliant
in terms of NI 43-101).

AFR completed a 2,002 metre RC percussion drilling program that enabled
the estimation of a NI 43-101 compliant maiden Inferred Resource of 5.8
Million tonnes at 1.3% Cu for 75,400 tonnes of contained copper metal
and 0.4% Co for 23,200 tonnes of contained cobalt metal (using 0.5% Cu
cut-off). See the technical report of Geosure Exploration & Mining
Solutions Pty Ltd, dated November 15, 2010 and filed on www.sedar.com on December 2, 2010. A further 1,538.73 metres of diamond core drilling
at the Project in January 2011 enabled a re-estimation of the resource
to produce a NI 43-101 compliant Inferred Resource of 14.7 Million
tonnes at 1.1% Cu for 161,700 tonnes of contained copper metal and 0.3%
Co for 44,100 tonnes of contained cobalt metal (using a 0.5% Cu
cut-off). The revised resource represented an increase of 114% and 90%
respectively of the previous contained copper and cobalt metal
estimates. See the Company’s news release dated August 29, 2011.

The Luisha South Project also covers some three kilometres of the Roan
Group strike length which is favorable for Cu-Co mineralization.

AFR has also secured option rights over several projects in Zambia that
are considered prospective for both copper cobalt and in some cases,
gold mineralization. AFR is currently completing initial exploration of
these licences to confirm its intention to continue with the
agreements.

SOURCE African Metals Corporation